Kennedy Adopts No Dollars for Dictators Act to Stop Taxpayers Money Flowing to China, Russia and Iran – Press Releases
WASHINGTON – Senator John Kennedy (R-La.) Today unveiled the No Dollars for Dictators Act. The law would prohibit the granting of Special Drawing Rights at the International Monetary Fund (IMF) to genocide perpetrators and state-sponsored terrorists unless Congress approves the grant.
“The Biden administration shouldn’t force US taxpayers to fill the pockets of Xi Jinping, Vladimir Putin and Hassan Rouhani. It is amazing that President Biden and Secretary of State Yellen have given the green light to a deal that would send $ 40 billion to China and Russia, while all the poor countries in the world together would get half.
“Congress is responsible for managing taxpayers’ money, and this bill would prevent the Biden government from putting an end to it on behalf of the world’s worst dictators. Oppressive, hostile regimes work every day to undermine America’s security and success, but the White House shouldn’t help them. ” said Kennedy.
President Biden has approved a general allotment of Special Drawing Rights at the IMF totaling $ 650 billion without the approval of Congress. Much of this allocation will go to dictators and countries that actively oppose American interests and violate human rights.
The IMF distributes special drawing rights according to the economic position of each country in the world economy. This means that the richest countries in the world receive special drawing rights for all IMF members.
The president’s rationale for supporting the proposed allocation is to allow low-income countries to exchange their special drawing rights for currency to fund efforts to fight the coronavirus pandemic. However, under the proposed allocation, the countries with the world’s 19 largest economies would receive $ 426 billion – most of the special drawing rights. The 24 poorest countries would only get 3 percent of the allocation, or $ 21 billion.
China alone would receive $ 22 billion in special drawing rights, more than what all poor countries would receive combined. Russia would receive $ 18 billion. The allocation would not only send billions of dollars to Xi Jinping and Vladimir Putin, but also billions in aid to Hassan Rouhani, Bashar al-Assad and Nicolas Maduro.
State sponsors of terrorism would also receive aid from the grant President Biden approved. Iran would get $ 3.5 billion and Syria would get $ 900 million.
While some have claimed that Special Drawing Rights are a free way for the US to help poor countries, it has been proven wrong. This IMF allocation would require the US to issue bonds to cover the Special Drawing Rights lending. The US would have to pay interest on that debt, and that interest would exceed any interest the US could get on the loans it made.
There is no obligation that countries that receive US loans through special drawing rights ever repay the principal. As a result, the financial burden of these loans will fall on the US taxpayer.
The text of the No Dollars for Dictators Act is Here.